South Africa is on the verge of exiting the Financial Action Task Force’s gray list after making significant progress in tackling money laundering and terrorist financing. The global watchdog confirmed the development Thursday.
FATF President Elisa de Anda Madrazo stated South Africa has met all or almost all required reforms. A FATF team will visit this month to verify if the changes are fully implemented and sustainable. A final ruling will be made at the FATF plenary meeting in October.
This matters for several reasons. Exiting the gray list could boost foreign investment and ease financial transactions.
South Africa was added to the list in February 2023 due to gaps in anti-money laundering and counter-terror financing systems. FATF praised South Africa’s strong dedication to reforms, citing meetings with central bank governor Lesetja Kganyago.
The next steps involve an on-site review where assessors will examine enforcement, prosecutions, and regulatory compliance. Removal from the list would signal improved financial governance after years of state-capture scandals.
